Tax Free Childcare

Childcare can be a headache for working people and every little bit of help with costs is appreciated by working parents.

HMRC currently offer a childcare vouchers scheme which will continue, but here is also a new scheme, Tax Free Childcare, which will be introduced in the autumn of 2015.

The key features of the scheme is eligible parents will receive a government top up of 20p for every 80p towards their childcare cost up to a limit of £2000 per annum per child.

The intention is to try to make the scheme simple with just one scheme provider National Savings and Investments and to make it available to a much wider range of working parents with income of up to £150,000 per annum which is expected to make it available to up to 1.9m working families.